house appraisal | Real estate valuation: impartiality is a guarantee of quality

Real estate valuation: impartiality is a guarantee of quality




Do you know the market value of your property? This information can be very useful to you, and not only if you decide to sell your house! The best way to have the right time: get a real estate appraisal.

Who to trust?
A real estate appraisal must be made objectively, without emotional attachment and without pecuniary interest. Applying to an assessor recognized by the Ordre des evaluateurs agréés du Québec (OEAQ) or an evaluator who is a member of a professional association in the field of real estate appraisals, ensures an impartial and neutral opinion on a property .

The mission of the OEAQ is to protect the public interest. It ensures the quality of the professional acts posed by its members:

He guarantees their technical competence.
It guides their work by establishing standards on evaluation methods and techniques as well as the nature, content and mode of communication of reports.
He monitors their practice; it handles among other things the complaints of the public.
He certifies that they hold professional liability insurance.
To find out if the appraiser you think is mandated to evaluate your house is a member of the OEAQ or if he has been the subject of a disciplinary sanction, consult the Ordre's website at www.oeaq.org call 514-281-9888 or 1-800-982-5387 (toll-free).

The technical competence of the Appraiser Canadian Institute (AACI) accredited evaluators, judged by the Appraisal Institute of Canada, is deemed equivalent by the OEAQ. However, this is not the case for Canadian Residential Appraiser (CRA) members of this same private association.

Finally, remember that if the title of chartered appraiser is indeed reserved for members of the OEAQ, in Quebec, anyone can produce a real estate appraisal. If you decide to do business with an appraiser who is not approved by the OEAQ, you must at least verify that he has commercial liability insurance. In addition, it is important to retain the services of a person who has no interest in relation to the building in question in order to obtain a completely objective opinion of its value.

What to expect?
If you decide to have your property assessed, here is an overview of the main steps in the process.
The appraiser or his collaborator goes on site and verifies the dimensions of the house and the ground. He takes pictures and observes the general condition of your property. If possible, he will talk with you to complete his data collection. This inspection tour usually lasts 45 to 60 minutes.
Based on the information collected, the appraiser determines the value of the property based on its location, lot size, building size, age, condition, equipment, etc.
The evaluator produces a written report. This report may be shortened or detailed as needed. The abbreviated report is a summary of the evaluation and is most often produced from a form with checkboxes. The detailed report, called "narrative", allows to enter a complete description of the house. Whether the report is detailed or abridged, it must contain 12 specific elements, including:
Physical and legal information about the building;
The purpose of the evaluation;
A definition of the value sought;
The date of the assessment;
A statement of reservations limiting the scope of the assessment;
The signature of the evaluator.
For a single-family home, a property appraisal usually costs $ 500 or more.

When is an evaluation worth the cost?
Beyond setting the selling price of your home, a host of reasons can motivate you to ask for a real estate appraisal. Here are a few :

Allow patrimonial sharing during a death or divorce.
Settle a disagreement with an insurer about the amount of protection needed or compensation for a loss.
Get a mortgage or financing for renovation or construction work.
Challenge the property tax (municipal taxes) or compensation offered in connection with an expropriation.
In the context of a patrimonial sharing or an expropriation, the intervention of an evaluator is unavoidable.

In terms of home insurance or property taxation, the extent of anticipated financial gain must first be evaluated in a very rational way before seeking a formal assessment.

Be aware that during a borrowing process, financial institutions usually usually appoint an appraiser. On the other hand, if the lender agrees, you have every interest in addressing yourself to an appraiser. Why? Since, in any case, you will have to pay for his services, at least if you call an appraiser yourself, you will be able to keep the report. A significant potential advantage if you have to turn to another lender in the event of a refusal.

Thanks to Denis Aubert, president of Aubert, Sylvain et associés inc., And Hélène St-Denis, president of Bourassa and Jodoin inc., For their contribution to the production of this capsule-conseils. Their accredited appraiser firms are members of CAA-Quebec's recommended network of companies.



Canadian Institute of Evaluators (ICE)

In Quebec, property appraisal is not a field of practice reserved solely for members of the Order of Approved Evaluators of Quebec (OEAQ), other actors such as the members of the Appraisal Institute of Canada (ICE) and work too.

Present throughout Canada, ICE is a private association with approximately 200 members in Quebec. Its members are not subject to the Quebec Professional Code. Administered by the Office des professions du Québec, this code frames professional orders to ensure that everyone protects the public interest by guaranteeing the quality of the professional acts of its members.
Although not subject to this Code, the ICE, however, has an organizational structure similar to the OEAQ. (and operates on a self-regulation mode) The ICE guarantees that its members:

"Maintain a higher level of integrity and professionalism;
Act in a way that will inspire a sense of trust and protect the public interest;
Provide quality services in their areas of expertise; and
Commit to respecting principles that reflect high standards of professionalism. "

In addition, ICE members commit to ongoing training and development courses.

www.aicanada.ca

Finally, it should be noted that, in order to develop a larger clientele, especially in a market outside Quebec, several members of the OEAQ are also members of the ICE.